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Crude Oil Prices Suffer Biggest 2-Year Bloodbath On Record
With yet another false-dawn of crude prices blowing in the wind of cash-flow generation desperation, we thought it an appropriate time for a bigger picture glance at the state of the carnage in crude...
An ugly 2014 (down 46%)...
Brought an avalanche of knife-catching "once in a lifetime" opportunists into ETFs to buy the dip in as levered way as they could...
Only to see crude prices collapse another 31% in 2015 for the worst 2 year crash in the history of crude oil trading...
h/t @VexMark
And despite this bloodbath, production is rising, demand flailing, and global storage is at its limit...
So what happens next?
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Maybe we get efficient at pumping it back in the ground.
Oh wait...SPR.
"What happens next"?
Collapse? Please? Pretty please, bring this ponzi fraud down!
Article in 2015: Crude Oil Prices Suffer Biggest 2-Year Bloodbath On Record
Article in 2016: Crude suffers the biggest bloodbath ever. A litter of Perrier water costs more than a barrel of oil .
I would like to see that "crude storage capacity" expanded and defined.
The real story here is that the global economy has an energy DEMAND problem ... that is getting worse.
If certain parties don't start actively shooting at other parties to take supply offline, things are going to be heading straight to hell in quick order (like they haven't been already). Buckle up!
Regards,
Cooter
Demand problems...maybe. The other side of the equation is that we are witnessing economic warfare against Russia. They are trying to pull the same trick they did with Gorbatjov.
If we wake up with the news of Putin being overthrown the price will rapidly rise to 115 USD.
Gives you an interesting view on what the "real" oil price really is. An the profit margins of the ayrabs. Another argument to kikck their ass and take their gas. And yes they will try to flee on their private jets but that´s a minor problem that a volley of BUK´s will take care of.
Honestly - who needs and wants these people...?
what you call an "Energy Demand PROBLEM" i would call
improved productivity and technology.
When I replace 8 100 watt incandescent bulbs in my house with 8 1500 Lumen LED lights
consuming 15 watts each, I have destroyed 900 watts of electrical demand and 2 KW of AC demand
in the summer.
My house is now noticably colder in the winter, i'm having to fix some air leaks that weren't an issue before.
When I replaced my car with a Chevy Volt with my lifetime MPG of 188 MPG, i have destroyed
about 200 tanks of gasoline i will never ever buy again.
When I add 5 KW of Solar PV to my house, I will destroy a lot of electricity demand via small production.
Then there will be a fire underground, then an explosion where they don't know how to put out the fire and the oil leaks into every water table in America while the air will be filled with toxic fumes that will make China look like a pristine paradise?
Could you expand on the oxidizer supply?
...and yet, my Gas is still $3.25 a Gallon...
Taxes amigo. Here in NC $1.78.
Illinois - $1.89
Fucking Illinois. Probably half that price is tax.
Total tax, state by state. http://then.gasbuddy.com/USA_Tax_Map.aspx
Uncle Sam: Thank you for helping fund the war in the middle east.
Obamaland.
You voted for him - twice. And you got and will get even more of the Illinois political model.
Do you realize what you have done?
Buy an Electric car and tell them to shove off
What happens next?
Either Russia or the Arabs cry uncle.
Or there is a "accident" in the suez canal,will call Vlad tomorrow to see what's on the agenda for the coming weeks......
Suez doesn't carry much oil. Strait of Hormuz.
thank you for your reality-based contributions, arbwhore.
When Obama saved GM during the great recession, the republicans were bitching and moaning saying let capitalism play out. Well what comes around goes around. All these shale oil companies are in red states and we'll soon find out that the biggest crybabies are republicans. Obama and then Hilary will have the last laugh!!!
wow, that's some deep diving
Yes, you're pretty deep in the Matrix.
Need Oxygen, SOMA, or both?
Not divemaster.
You’ll be the one needing the mask next November.
bernie '16
See Kids,that's what happens when you don't properly decompress after your dive,permanent damage,as seen here....
And why do you think Obama is letting Riyadh dump oil below cost and destroy shale?
His attitude remains, fuck the crackers, they never voted for me anyway.
no doubt that's true.
somehow i can read into that an implied different attitude toward those who voted for him. one, i must add, i can't discern in his behavior. speeches, possibly. behavior, nada.
now as for those who gave him large amounts of money (or, probably, threaten him and his family), yes.
well, if that is the truth, then he's finally developing some political skills.
Because he's shafting a lot of midwestern fracking companies, who gave heavily to the
GOP he's shafting a lot of red state governors who have budgets awash in red ink,
he's shafting a lot of industrial supply companies who were full of loyal red voters.
Sweet!
I'm having to drive 40 miles each way to my 29 hours/week no bennies job.
Markets are so highly levered now that even though the supply demand gap has streched a little (less than 10%), the price has fallen 2/3rds. Its not supply, its not demand, its "investors" levered up on cheap credit.
Bingo and HY is proof.
It's war.
Looking at the charts and closing above support , it looks like a ramp for thursday.
Looks to me storage levels are rising in the US ONLY. The rest is fairly constant. Are the EU and Pacific storage facilities full since 1998? Don't think so .... this is a US problem - no consumption. Getting rid of humvees and the like ...
hendrik1730
If you look carefully at the chart you will see that the EU and the Pacific are already "full". North America has a lot of storage capacity. We are the swing storage.
1.52 in Tennessee!